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Norwegian Air tries to disrupt trans-Atlantic market

  • Norwegian Air keeps adding orders for 787 Dreamliners as its stays on an aggressive of path of creating a low-cost carrier model for flights across the Atlantic Ocean.
  • The company's expansion could also include flights to Asia.
  • Regulators in the U.S. still need to approve the plan and will review filings from a group representing United Continental (UAL +0.2%), Delta Air Lines (DAL +2.9%), and American Air Group (AAL +1.1%) claiming Norwegian Air is trying to skirt DOT rules.
Comments (2)
  • A few thoughts:

     

    -- This is not the first low-cost venture that has been attempted on transatlantic flights: in the economy market, there was Laker Airways back in the 1970s, flyZoom more recently. In the "low-cost" business class market carved out by MaxJet and EOS Airlines, British Airways' OpenSkies is the sole survivor (having taken over their competitor L'Avion). What makes Norwegian more likely to succeed where others have failed?

     

    -- Are passengers really willing to consider price alone, without regard to reliability or quality of service, for long-haul flights? Small seat pitch and unbundling everything may work on short-haul, but will it work on flights of 6+ hours and be attractive to people, especially on the routes they are trying?

     

    -- Norwegian Air doesn't have an excellent record for on-time operation or in-flight service. See this for more details of delays and spoiled food: http://bit.ly/LBP5JQ
    21 Jan, 01:36 PM Reply Like
  • Yes, they are willing to consider price alone! Look at all the cheap motels (I would not stay in) with “No Vacancy” signs lit.

     

    Especially Asians traveling to the US, they will save a few hundred dollars and for their bit of discomfort buy something here to take home with them.

     

    Small sacrifice to some, unthinkable to others.
    21 Jan, 06:25 PM Reply Like
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